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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (12961)	5/19/2015 8:22:59 AM
From: Goose94	Read Replies (1) \| Respond to of 202925

Gold bulls are attempting to take a stand around the $1,225 per ounce level in early trading Monday. Renewed concerns about the underlying strength of the U.S. economy and the potential for Fed rate hikes to be delayed are lending support to gold trade. Last week's action saw a strong rally move, with solid gains on the weekly June gold chart. The gold contract is testing an important chart zone around $1,224.50/1,225, the first level represents the April 6 swing high and the latter level is psychological. Gold bulls are gaining a toehold around this critical technical region and sustained strength above $1,225 this week would open the door to a fresh rally wave. In the news, Federal Reserve Bank of Chicago President Charles Evans reiterated his call for the central bank to delay hiking interest rates in 2015. Evans, a voting member of the Fed's policy setting committee made the comments in a speech prepared for delivery on Monday. He was reported as saying it could make sense to overshoot the Fed's 2% inflation target for a time in an attempt to achieve the bank's growth and inflation targets more quickly. This speech follows fresh news that economists expect slower growth this year in the U.S. Economic data continues to disappoint in the U.S., which has resulted in a downgrade to the overall gross domestic product forecasts for 2015. A survey released on Friday by the Federal Reserve Bank of Philadelphia revealed economists now forecast U.S. gross domestic product growing just 2.4% this year, which is down from a median 3.2% estimate in the first quarter survey. The slower growth expectations inject additional uncertainty into the timing of a Federal Reserve rate hike this year. Shifting back to the technical picture for the gold market, the trend following picture has improved significantly for June gold futures. The contract is now trading above its 20-day, 40-day, 100-day and 200-day moving averages. See Figure 1 below. On the upside, sustained gains above the $1,225 area will open the door for probing toward minor bullish targets at $1,246.50, the Feb. 10 high and then $1,275, the Feb. 5 high. On the downside, last Friday's low at $1,210.60 is now important short-term support for the market. By Kira Brecht, Kitco.com Convincing Bulls Is Like Pulling Teeth